Entrepreneurship Standard 5 Exam Review

Jennifer is evaluating the appropriate pricing strategy for her small business's products. Which aspect of business decision-making is she focusing on?

• a product decision

• a place decision

• a promotion decision

• a pricing decision

Most sales forecasts are based on past sales performances as well as:

• government regulations.

• the number of local competitors.

• managers’ hopes for the future.

• expected market conditions.

If customers perceive that they are not receiving adequate value for their money, what potential impact could this have on a business?

• Sales remain the same

• Customers purchase more

• Customers spend money elsewhere

• Sales increase

Quantitative sales forecasting is:

• based on expert opinion and personal experience.

• based on economic conditions that rise and fall

• based on businesses that talk to knowledgeable people who have a good “feel” for the marketplace.

• based on the analysis of hard facts or numerical data.

Is it possible for prices to be set too low, and what might be the consequences?

• No, the lower the price, the more willing the customer is to buy.

• No, the lower the price, the greater the product’s appeal.

• Yes, customers may feel the quality is too high.

• Yes, customers may perceive the quality as too low.

Which method of sales forecasting relies on the analysis of concrete data and numerical evidence?

• Short range

• Quantitative

• Qualitative

• Long range

In which of the following types of businesses does the owner typically have the autonomy to set their own prices?

• Old Navy

• Sam's Coffee

• Kohl's

• Target

A pet products company is developing a new, inexpensive dog shampoo but cannot afford to spend millions on research. This scenario illustrates how pricing influences which element of the marketing mix?

• Product

• Promotion

• Place

• Profit

A company aims to reduce costs by opting to ship its products via truck instead of air freight. In this scenario, which element of the marketing mix is being influenced by the pricing decision?

• Place

• Product

• Problem Solving

• Promotion

When Johnny sets prices for his company, he aims to achieve the highest possible profit. This goal is best described as a type of:

• pricing objectives.

• product strategy.

• transportation choice.

• advertising goal.